Notable News Events, and How the Journal Covered Them

Aug. 4, 1920: Ponzi’s Scheme

It was a Ponzi scheme in 1920—the original swindler named Charles Ponzi, that is. This Journal article appeared on the front page as suspicions grew. “History is full of the record of money being quickly gathered up by the million with promise of big return,” the article noted, with profits made by “the people who first get out.” Today in WSJ History, Aug. 4, 1920.

Comments (5 of 7)

Seems the right has institutionalized a huge misconception on how insurance works, SS versus the swindle which is Ponzi.

3:03 pm August 4, 2014

Charles Ponzi wrote:

Far from being a criminal, I was an economist extraordinaire. Today the Federal Reserve uses a technique that I developed and calls it "monetary policy".

11:34 am August 4, 2014

Pericles wrote:

Swallowing Diogenes explanation takes holding your nose even more than that of Mr. Ponzi

11:05 am August 4, 2014

Diogenes wrote:

The SEC doesn't prevent fraud but it more or less attempts to enforce laws directed at reducing it. Less in the case of Madoff. More in the recent cases of insider trading by US attorney for NY. The best securities laws relate to transparency. I think investors are better informed now than they were in the 1920`s, but they have a long way to go.
In the final analysis the SEC is a bunch of bureaucrats. It may or may not help if you really have a problem with security fraud. It slept through some of the biggest frauds of recent times. Your best friend is the common law and the old fashioned tort system. If you are harmed then there is a fair chance that even our inefficient and antiquated legal system can compensate you.

10:32 am August 4, 2014

Andrew Wilt wrote:

From Merriam-Webster online: A Ponzi scheme is - "an investment swindle in which some early investors are paid off with money put up by later ones in order to encourage more and bigger risks"- which is not unlike Social Security except that one is forced into Social Security (which is actually worse).

Today in WSJ History

As the Journal celebrates its 125th year, we look back on how the paper covered the biggest news events since the first paper – just four pages, priced at two cents – was published on July 8, 1889. (Subscribers in 1889 were offered an annual deal of just $5, though of course that didn’t include a digital edition.) Watch this space for how the paper covered wars, crashes, sinkings (we didn’t get the Titanic quite right), celebrations, inventions, triumphs and other notable events.